Ubiquitous inequality

Inequality has become a buzz word in development circles as even rich countries are not exempt from it. However, in Pakistan it has taken another dimension.

Emaciated bodies pulling carts full of bricks vs well fed ones in expensive cars. Homes with leaky roofs in neighbourhoods without water or sewerage vs luxurious palaces in posh societies. Dilapidated schools without bathrooms vs schools with state-of-the-art equipment. The list goes on.

This is the focus of the recently released National Human Development Report 2020 (NHDR 2020). According to it, three Ps are key factors in causing and sustaining inequality: Power, People, Policy. Power refers to privileged groups/individuals using their power to grab more than their fair share, in other words 'elite capture'. I believe this is by far the most important factor.

Traditionally, the solutions proposed to counter inequality are: social work and charity, along with a focus on education, skills training of the poor and microcredit. They have not worked. Only more structural changes towards a more egalitarian social, political and economic order will work. I am proposing some steps in that direction. These would trigger not just resistance but even a violent response from those wanting to hold on to their power, which can be countered only by an organized rights based grassroots political movement. Due to lack of space it is not possible to go into the details so these are just some highlights.

Empowering citizens through strong local government institutions will allow them to make political, administrative and financial decisions at the local level, help solve many local problems and also act as a stepping stone for the middle and working class to enter mainstream politics.

The most important way to break elite power is to have politically conscious citizens. Everyone should be able to contest elections. Right now the election process has been made so expensive that it is monopolized by the rich. Electoral reforms are needed to address this.

A living wage needs to be implemented in place of minimum wage, a concept being discussed all over the world. At the same time, the difference between highest and lowest paid employees needs to be reduced. Coupled with the step below, it will help ameliorate major deprivations. Savings by eliminating perks to the rich etc can easily fund this.

Lack of quality healthcare, housing, transport and access to the internet directly or indirectly sustain inequality. The state has to ensure equal access to fundamental human needs, helping improve quality of life and free up time to participate in political life.

Strong trade unions are a critical and most effective way to counter inequality. Weak trade unions and weak implementation of poor labour laws result in lack of job training, absence of protective gear, no healthcare and no compensation in case of accident causing death and disability, which results in families sinking below poverty line. Trade unions give workers bargaining power to negotiate wages, working hours, paid vacation, overtime etc, and provide platforms to lobby for their rights. The concept of contract labour has been completely misused in Pakistan to exploit and oppress workers and should be eliminated.

The youth makes up almost 65 percent of the population. A comprehensive plan for their education, training and job creation is urgently needed before we lose another generation to inequality. Systems to include their voice in decision-making and prepare them for future leadership should be set up.

Gender inequality cuts across all socioeconomic classes and all ethnic, religious, national boundaries. Women’s share in national income and wealth as well as land ownership is miniscule. Ensuring they get their share in inheritance, removing roadblocks in the way of their getting education and jobs, protection from harassment and provision of safe convenient transport is important. Some steps to lessen their burden of house work should be taken to allow them to participate in public life.

Unequal land ownership is a major source of economic inequality as well as sustaining the ‘Power Factor’ leading to social and political oppression and exploitation of the poor. Pakistan needs a comprehensive land policy. Land should be treated as a strategic asset rather than a profit-making commodity. Land is crucial for prevention of food insecurity, and is needed for homes, public places like playgrounds, theatres, museums, infrastructure, parks. The old concept of distributing small tracts of agri-land to the landless poor needs to be replaced by cooperative farming. There is also an urgent need to tackle the land mafia, a huge challenge indeed.

Unequal access to capital is a major source of inequality. Private banking sector mostly caters to the rich. That is why public banking should be improved and expanded to fulfil the needs of the community. There are different models of private banking. We can adopt what is most suitable for us.

Cooperative businesses are another way to pool resources for those not born with a silver spoon. Training cells can be set up by the government or public universities to help new graduates or others. Capital should be made available through public banks as above.

A proper taxation system helps to redistribute wealth and reduce inequality. In Pakistan, the major tax burden is on the poor. Share of direct taxes is only 20 percent sustaining inequality. More progressive taxation system is necessary for reducing inequality.

Education is expected to create a more level playing field. However, in Pakistan it has become a commodity due to uncontrolled privatization. As a result, good quality education is accessible only to the rich. The state has to take responsibility to provide equal quality education to all.

Multinational companies’ contracts with the state need to ensure that their profit stays in the country and taxes are duly paid which can be used to provide social services to citizens.

Thus, there are ways to address inequality. But it will need political will. The most effective way to create political will is through pressure from below by politically organized rights movements. If not rooted out, inequality will have grave consequences which can threaten the very existence of Pakistan.

The writer is a freelance contributor.

Email: shahnazk@gmail.com

Twitter: @shahnazsk